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02 Nov 2009
Beijing
Consumer confidence in China during the third quarter 2009 has reached its highest level since mid 2007, driven by improved job conditions in Western and 2nd tier cities, according to a Consumer Confidence Survey jointly released today by The Nielsen Company.
According the Nielsen Global Confidence Report, compared with the second quarter, the greatest increases were in Hong Kong, followed by South Korea and Brazil. In Hong Kong confidence grew 14 points, with South Korea and Brazil seeing increases of 13 and 12 points, respectively. Confidence in both Australia and New Zealand also grew by 11 points. “We see that worldwide, consumers are feeling that we are on our way out of the recession.” said Mitch Barns, Greater China President, The Nielsen Company.
The Consumer Confidence Index, the largest survey of its kind, surveyed consumers in 54 markets in September. The China Consumer Confidence survey has analyzed online, telephone and household survey data from more than 3,400 Chinese consumers of all city levels and the countryside to identify consumer confidence, purchasing behavior and to forecast consumer spending. This will be the first report of its kind to compare results with past quarters and identify the latest trends across different regions and tiers of cities in China.
In China, consumer confidence increased 6 points, from 95 to 101. Improvement in consumer confidence in China was greatest in the Central and Western regions and in tier two cities, where confidence was hardest hit earlier in the year. Consumer confidence in Central and Western regions of China both increased eight points to reach 100. Consumers in higher tier cities showed more confidence in the third quarter, particularly in tier two cities where confidence rebounded 15 points to 104.
Nielsen’s consumer confidence survey showed that the rebound in these areas was driven by especially strong improvements in local job prospects and personal income. Nearly six in ten consumers in Western China (57 percent) felt that local job prospects are “good or excellent”, up 14 percent from the second quarter. Consumers’ prospects for the local job market in tier two cities increased significantly this quarter, up 22 percent, with 55 percent of them reporting they felt “good” or “excellent” for job prospects over the next 12 months.
State of Personal Finances also improved across China’s regions and city tiers. Nearly six out of ten Chinese consumers feel “good” or “excellent” about their personal finances in the next twelve months, a 12 percent increase from the second quarter. Consumers in Eastern China and the tier two cities had the biggest improvement with a 13 and 22 percent increase, respectively, ranking as the most optimistic region and city tier in China.
“In the previous survey conducted in July, we saw that consumers were beginning to feel that the economy had bottomed out and was on the road to recovery. In the third quarter we see an extension of this optimism. Consumers are gradually feeling more comfortable with their situation and feel that the economy is moving in the right direction,” said Mr. Barns.
While consumers in China reported an overall improvement in personal income and job prospects, when asked about their willingness to spend, the Chinese consumers continue to show some reluctance. However, consumers in the Eastern part of China (48 percent said they are willing to spend in the next 12 months) and tier one cities (51 percent) reported more motivation to spend in the next 12 months than the rest of the country (China average, 42 percent).
“Consumers in China are still hesitant to go out and spend money, yet the results indicate that there is a willingness to spend on new products. Companies that focus on innovation and introducing new products to the market will be the ones to drive consumption throughout China,” said Barns.
About the Nielsen Global Consumer Confidence Survey
The Nielsen Global Consumer Confidence Survey was conducted in September and polled 30,645 consumers in Europe, Asia Pacific, North America and the Middle East about their confidence levels and economic outlook. The Nielsen Consumer Confidence Index is developed based on consumers’ confidence in the job market, status of their personal finances and readiness to spend.
About the Nielsen China Consumer Confidence Survey
The Nielsen China Consumer Confidence Survey was conducted between August and September and polled more than 3,400 consumers from all city tiers in all 4 geographical regions of China. It is quarterly survey with the same respondents each wave. It is the largest survey of its kind, gauging latest consumer sentiment and confidence, changes in Chinese confidence in the economic outlook and their Concerns, Spending Desires, Saving and Investment plans
About The Nielsen Company
The Nielsen Company is a global information and media company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and business publications (Billboard, The Hollywood Reporter, Adweek). The privately held company is active in more than 100 countries, with headquarters in New York, USA. For more information, please visit, www.nielsen.com
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